There Is a Tradeoff Between Risk and Return (I

question 27

Multiple Choice

There is a tradeoff between risk and return (i.e.,to earn higher returns you generally have to take more risk) because ________.

• A)investors like risk and return and want more of both
• B)investors are risk averse,so they will not accept riskier investments unless they offer higher returns
• C)to earn higher returns you have to make bigger investments and bigger investments are always riskier than smaller ones
• D)investors care about returns but not about risks

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Definitions:

Rule 702

A regulation in the Federal Rules of Evidence concerning the admissibility of expert witnesses' testimonies in United States courts.

Federal Rule Of Evidence

A set of regulations adopted by United States federal courts governing the admission and use of evidence in proceedings.

Disparagement

In tort law, any false statement made to others that questions the legal ownership or raises doubts as to the quality of merchandise.